Amendment to Fastmarkets’ iron ore 65% Fe Brazil-origin fines, cfr Qingdao indices: pricing notice

After a three-month consultation, which closed on Friday October 3, Fastmarkets has amended the specifications of the index for MB-IRO-0009 iron ore 65% Fe Brazil-origin fines, cfr Qingdao, by raising the silica base specification to 2.7% from 2.2%, as well as an inclusion of minimum and maximum values for silica and alumina levels, to ensure that it matches with the latest quality of high-grade fines commonly traded in the market.

The amendment follows a one-time differential Fastmarkets published on Friday October 31, that may be used to adjust the 65% Fe iron ore fines derivative and other contracts that settle against its index on the Singapore Exchange. The differential was based on the simple mathematical average of Fastmarkets’ high-grade iron ore silica value-in-use (MB-IRO-0192) for the October 3-31 period inclusive.

The new specification would be as follows, with amendments in italics:

MB-IRO-0009 Iron ore 65% Fe Brazil-origin fines, cfr Qingdao, $ per tonne
Quality: Fe content base 65%, range 63.5-66%; silica base 2.7%, min 2.2%, max 3.3%; alumina base 1.4%, min 1.0%, max 1.8%; phosphorus base 0.075%; sulfur base 0.01%; moisture base 9%; granularity 90% <10.0mm, <30%<0.15mm
Quantity: Min 30,000 tonnes
Location: CFR Qingdao
Timing: Within 2-10 weeks
Unit: USD per tonne
Payment terms: Payment at sight
Publication: Daily 6:30pm Singapore time
Notes: Brazil origin only. Data history from August 2013.

This price is part of the Fastmarkets steelmaking raw materials package.

In line with the finalized specification changes and market feedback, Fastmarkets will also cease the publishing of the MB-IRO-0192 0.5% high-grade iron ore silica value-in-use indices from today.

To provide feedback on this index, or if you would like to provide price information by becoming a data submitter to this index, please contact pricing@fastmarkets.com or steelrawmaterials@fastmarkets.com. Please add the subject heading “re: 65% Fe iron ore index.”

Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.

To see all Fastmarkets’ pricing methodology and specification documents, go to the Fastmarkets methodology page.